Of course, I was happily wrong about both of these assumptions. Harada clarified, in broken Engrish, that he was just messing around with some of the forum members on Neogaf. Also, this wasn't some deep seeded SJW conspiracy led by Anita Sarkeesian to rid the world of "Furry Vocaloid Idols". So, what is the deal!? I wanted to find out, so I've dived deep into the WORLD WIDE WEB to find some answers...and it seems that some people are really not happy with her design. Depending on what site you looked at, the reception was either very positive or very negative. Neogaf and 4chan seem to despise her, while Reddit and Twitter seems to be rooting for her, even making petitions for her release.

Here are some good quotes I've found to better explain the controversy.

The negative:

Tekken has gotten out of control with the ridiculousness....with
this stupid overly catered to anime nonsense that is too much even for Tekken.
The hate for her has absolutely nothing to do with feminism or SJW crap or
whatever nonsense you're so blinded by....Doesn't it say something about how
different they're catering their new characters. Before we'd get believable yet
cool new characters based on legitimate martial arts. Now the only character
that has a martial art is Katarina while everyone else is one Anime trope after
the other.

Yes, tekken has always had some REALLY out
there character designs, but they still tend to be either combat oriented
(giant animals, mannequins, robot girls) or joke characters (Gon, the old
doctor dude who couldn't stand up, etc). This doesn't really fit into either
category and really comes across as pandering (oh it took so much willpower to
not make a panda-ing joke...)

Did Harada have a seizure or something

I don't mind those sorts of characters as
they add diversity for folks that care about playing them, but ripping off
another game's character design (which is what's happened here) and mashing
together Lili and Christie's moves to make said character is kinda bootleg.

Chloe
is a poor design for Tekken. This is the part where you say "but bears and
kangaroos and aliens!" Look, if Chloe was ALSO an alien or a robot then I
think that she'd be pretty interesting. Chloe is neither semi-realistic or
super outlandish… But hey, it's his game. He can do want he wants with it. But
I can complain about it too. If I didn't love the series I wouldn't even
complain… And I'm not a moe hater either. I'm one of "those" guys.
But it has no place in Tekken.

Don't get me wrong, Felicia was one of my
favorite Darkstalkers characters, but this moe stuff doesn't belong in Tekken.
Not only that, but they couldn't even give her a unique fighting style. Half
these moves are straight Xiaoyu ripoffs.

The "Postive":

And what exactly is wrong with this character? It's a japanese
game, so of course it will have japanese character archetypes. This particular
archetype is quite popular these days, so why not? If you aren't a fan of wacky
japanese tropes, you are looking at the wrong franchise.

I want to buy
whatever plays Tekken 7, Tekken 7, learn how to play, and main Chloe. She seems
INCREDIBLY annoying. I'd love to make my opponents suffer through that. I like it.

Wait. Wait. Why
are people shitting bricks about an 'idol' character? What? They have a couple
pro-wrestlers, several wild animals, a predominantly pink and heart-y rich
girl, a friggin mannequin, super models, and a robot-samurai-clown... thing all
fighting in the same arena. But a popstar is
off limits. What the actual fuck is wrong with people?

The whole thing makes a little more sense when you read how dedicated Tekken fans received Chloe. I played a shit ton of Tekken I/II/III and mained King of course! I tend to see the whole thing in the positive light. Even if you don't like the character, it'll be fun to know that there's a high probability that whoever's ass you're kicking with her, they're going to be even more pissed. The troll potential is high my friends.